Human-AI Technology Integration and Green ESG Performance: Evidence from Chinese Retail Enterprises

TL;DR

This paper empirically demonstrates that integrating human-AI technology in Chinese retail firms significantly improves green ESG performance, mainly through fostering green technology innovation, with effects varying by firm size, ownership, and region.

Contribution

It provides novel empirical evidence linking human-AI integration to enhanced green ESG outcomes via green innovation in emerging markets.

Findings

Human-AI integration increases green ESG scores by 12.7%.

Green technology innovation mediates 35% of the effect.

Larger, state-owned, and developed-region firms benefit more.

Abstract

This study examines the relationship between human-AI technology integration transformation and green Environmental, Social, and Governance (ESG) performance in Chinese retail enterprises, with green technology innovation serving as a mediating mechanism. Using panel data comprising 5,400 firm-year observations from 2019 to 2023, sourced from CNRDS and CSMAR databases, we employ fixed-effects regression models to investigate this relationship. Our findings reveal that human-AI technology integration significantly enhances green ESG performance, with green technology innovation serving as a crucial mediating pathway. The results demonstrate that a one standard-deviation increase in human-AI integration leads to a 12.7% improvement in green ESG scores. The mediation analysis confirms that approximately 35% of this effect operates through enhanced green technology innovation capabilities. Heterogeneity analysis reveals stronger effects among larger firms, state-owned enterprises, and companies in developed regions. These findings contribute to the growing literature on digital transformation and sustainability by providing empirical evidence of the mechanisms through which AI integration drives environmental performance improvements in emerging markets.